CO129-588-24 China- British extra-territorial rights- negotiations with China 23-11-1942 - 1-1-1943 — Page 19

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On the whole

I wrong qud that it sh not be raised at this moment hit can be left until

This file with my minute of 16.12. had to

be recovered from higher authority in the Office for further conversation with the Foreign Office.

The Americans now have their Agreement ready to sign with the Chinese, but as we and they both want to conclude our respective Agreements with the Chinese more or less simultaneously, the Americans have agreed to defer signature in their own case until about the 1st January. The Foreign Office are, therefore, chasing up the outstanding points in our draft Agreement with the Chinese very hotly in order to reach finality.

The East Africa Department is content with the Foreign Office intentions about the Article which will govern rights in the future acquisition of real property, viz. there will be a reciprocal right for British in China and for Chinese in British territory to acquire real property, either "in accordance with the conditions and requirements prescribed in the laws and regulations" of the country concerned, or, "as far as possible under the same conditions as nationals" of the territory concerned.

The

The New Territories of Hong Kong. Foreign Office are now inclined to accept the face- saving device of the Chinese Minister Han Lih Wu reported at Q in 174. Mr. Ashley Clarke (Foreign Office) visited me last night with (1) a draft telegram to Chungking to say that Mr. Eden thought that would be a way out and had decided to seek War Cabinet approval urgently for telling the Chinese Government that H.M. G. would be ready to discuss

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the future of the New Territories with them as soon as victory was won In the meantime Sir H. Seymour could make a strictly personal response to Han Lih Wu's suggestion and say that he will, of course, refer it to H.M.G. for their consideration, but his own private view was that it was likely to meet with favourable attention from H.M. G. (2) a draft memorandum to the Cabinet explaining briefly the development of the Chinese request in these negotiations for provision to be made regarding the New Territories in the present Agreement, and. Han Lih Wu's face-saving suggestion, and asking for authority to let the Chinese Government know that as soon as victory was achieved we should be ready to discuss with them the"future of the New Territories.

Mr. Eden's memorandum is likely to be circulated today for the Cabinet on Monday, and the Secretary of State will no doubt consider whether there would be any advantages. in taking up at this moment the question at Y in my minute of 16.12., viz. the inclusion of the whole Colony of Hong Kong instead of only the New Territories in any discussions with China when victory is won.

The scope of the discussing. do comes up his detailed considrinton.

ms

SEL. Mant.

19.12.42.